Binance News: Hong Kong’s market regulator, the Securities and Futures Commission (SFC), has made an official statement about the world’s largest crypto exchange Binance. According to the SFC, Binance does not have a license to sell “stock tokens” in its jurisdiction.
Binance is not licensed to sell stock tokens in Hong Kong
SFC’s announcement comes after Binance announced that it will no longer offer stock tokens on its platform. A few hours before the SFC made its statement to the public, the expected statement from the crypto exchange came. Binance has stopped trading in stock tokens.
The stock service on Binance was first introduced in April this year, with offers for Apple ($AAPL), Coinbase ($COIN), Microsoft ($MSFT), MicroStrategy ($MSTR), and Tesla ($TSLA). Total trading volume was roughly $1 million. The service was provided by Binance through German financial services firm CM-Equity. Binance states that CM-Equity AG is about to launch its own stock token trading portal for consumers in the European Economic Area (EEA) and Switzerland.
“No regulated activities”
No entity in the Binance group is licensed or registered to conduct ‘regulated activity’ in Hong Kong, the Hong Kong Securities and Futures Commission said in a statement. The executive director of the SFC added:
“SFC will not tolerate any breach of securities laws and will not hesitate to take enforcement action against unlicensed platform operators where appropriate.”
Regulators around the world have issued warnings to Italy, Thailand, Japan, Poland, the Cayman Islands, Germany and the United States, as well as Binance, following the first public consumer warning issued by the UK’s Financial Conduct Authority.